Socket Mobile, Inc.

Revenue for Q2 2026 was $3.0 million, down from $3.9 million in Q2 2025 and $3.7 million in Q1 2026. Gross margin was 46.4%, compared with 49.9% in Q2 2025 and 51.3% in Q1 2026, and the decline was attributed mainly to underutilization of manufacturing capacity. Operating expenses were $2.6 million, down from $2.7 million in both Q2 2025 and Q1 2026, while operating loss was $1.2 million versus $687,000 a year ago and $767,000 in Q1 2026. Adjusted EBITDA was a loss of about $745,000, and loss per share was $0.16 versus $0.10 in Q2 2025 and $0.11 in Q1 2026. Cash totaled $1.6 million at June 30, 2026, and inventory net of reserves was $3.8 million. The company did not provide formal next-quarter or full-year revenue guidance, but management said cost cuts will remain in effect through the rest of 2026 and expects industrial scanning revenue contribution to grow over the next few quarters.

Dave Holmes said the operating environment remains difficult and that the company is not satisfied with the quarter’s outcome. He emphasized several actions: cost cutting, selective headcount reductions, broader use of AI to improve efficiency, and a sharper focus on products that generate revenue. He also framed industrial scanning as an important strategic hedge against the company’s dependence on retail scanning and software-channel demand.

Lynn Zhao detailed the quarter’s numbers: revenue of $3.0 million, gross margin of 46.4%, operating expenses of $2.6 million, operating loss of $1.2 million, adjusted EBITDA loss of about $745,000, and EPS loss of $0.16. She said the gross-margin decline reflected underutilization of manufacturing capacity and higher fixed manufacturing costs as a percentage of revenue. On the balance sheet, she said cash was $1.6 million at June 30, 2026, inventory was $3.8 million, the company was managing working capital carefully, and no going-concern issue was raised by the auditor.

An analyst asked whether Socket Mobile was still a preferred supplier to Shopify; management said yes, and that nothing had changed in that relationship, though retail and Shopify-related revenue has been down for the last few quarters. The analyst also pressed on cash burn and going-concern risk; management said no going-concern issue was raised and noted the company is trying to fund working capital through operations, with a bank line available but untapped. In response to questions about reducing dependence on software partners, Dave Holmes said the company is expanding into industrial scanning, selling more directly to enterprise customers, and that this business accounted for about 10% of Q2 revenue with more expected in the second half of the year.